Question

Last year, Carriage House Corporation had sales of $18 million and costs of goods sold of $3 million. Operating expenses amounted to $2,500,000. The firm had $8 million in 6.5% bonds outstanding. The firm had $830,000 in depreciation expense. Also, Carriage House sold 1,250 shares of Textron Corporation stock for $150 per share. Carriage House had purchased the shares for $110 per share two years ago. Carriage House also sold land for $2.8 million that it had purchased earlier for $2.2 million. Calculate Carriage House Corporation's tax payment.
tax rate 21%

Answer 1

			(Amount in million USD)
Sl.No	Particulars	Amount	Net
1	Income from operation
	Sales	18.00
	Cost of goods sold	3.00
	Operating expense	2.50
	Interest exp	0.52
	Depreciation	0.83
			11.15
2	Income from sale of share
	Sale of share	0.19
	Purchase value	0.14
			0.05
3	Income from sale of land
	Sale value	2.80
	Purchase value	2.20
			0.60
	Total		11.80
	Tax rate		21%
	Tax		2.48